Section 1 - Introduction - Crater High School



Table of Contents TOC \o "1-3" \h \z \u Section 1 - Introduction PAGEREF _Toc421274465 \h 3Executive Summary PAGEREF _Toc421274466 \h 3Self Analysis PAGEREF _Toc421274467 \h 3Section 2 - Analysis of the Business Situation PAGEREF _Toc421274468 \h 4Trade Area Analysis PAGEREF _Toc421274469 \h 4Geographical Analysis PAGEREF _Toc421274470 \h 4Competitive Data Analysis PAGEREF _Toc421274471 \h 6Swot Analysis PAGEREF _Toc421274473 \h 7Market Segment Analysis PAGEREF _Toc421274474 \h 7Analysis of Location PAGEREF _Toc421274475 \h 9Location PAGEREF _Toc421274476 \h 9Floor Plan PAGEREF _Toc421274477 \h 11Section 3 - Proposed Operation of proposed Business PAGEREF _Toc421274478 \h 12Proposed Organization PAGEREF _Toc421274479 \h 12Type of Ownership PAGEREF _Toc421274480 \h 12Proposed Product or Service PAGEREF _Toc421274481 \h 14Proposed Product or Service Mix PAGEREF _Toc421274482 \h 14Suppliers PAGEREF _Toc421274483 \h 14Equipment PAGEREF _Toc421274484 \h 15Proposed Marketing Strategies PAGEREF _Toc421274485 \h 15Pricing Policies PAGEREF _Toc421274486 \h 15Promotional Strategies PAGEREF _Toc421274487 \h 16Section 4 - Financing PAGEREF _Toc421274488 \h 16Projected Income and Expenses PAGEREF _Toc421274489 \h 16Sales Forecast PAGEREF _Toc421274490 \h 16Building Cost PAGEREF _Toc421274491 \h 17Section 5 - Conclusion PAGEREF _Toc421274492 \h 18Section 6 - Bibliography PAGEREF _Toc421274493 \h 19Appendix PAGEREF _Toc421274494 \h 22Selection Letter PAGEREF _Toc421274495 \h 22Print Ad PAGEREF _Toc421274496 \h 23Business Card PAGEREF _Toc421274497 \h 24Logo PAGEREF _Toc421274498 \h 25Section 1 - IntroductionExecutive SummarySophisticated scrubs is a retail business that will sell well needed products the Rogue Valley. The products that Sophisticated Scrubs will sell will be high quality brand name materials that include scrub shirts, pants and shoes used in the medical field. Sophisticated Scrubs will also have lanyards and fitness materials that are a luxury to have in the medical profession.Sophisticated Scrubs will be located in Medford, Oregon. Medford, Oregon is a great place for Sophisticated Scrubs to be located in because it has many hospitals around the area and also retirement homes. Many Professions in the medical field require medical scrubs. Sophisticated Scrubs will have a target Market of women ages 30-60 years old who have an education in the medical field. This target market will produce an estimate of $344,097 for the first year and potentially have a sales forecast of $688,194 after the first years.To start Sophisticated Scrubs, a personal fund of $70,000 will be provided to pay for the down payments of the two loans that will be taken out. Sophisticated Scrubs will need two loans: SBA 7a loan and an SBA 504 loan. The SBA loan will be for $357,235.05 with a monthly payment of $992.31. The SBA 504 loan will be for $17,220 with a monthly payment of $143.50 for 10 years.Sophisticated Scrubs will provide quality medical scrubs to the Rogue Valley for affordable prices with great customer service.Self AnalysisThere are many things that you need to run a successful business. A successful business requires dedication and effort and other skills that apply to the type of business that you own or run. In my business Sophisticated Scrubs I plan to sell great medical scrubs and other medical supplies, while also offering great customer service and a friendly, welcoming environment.To run a successful business you need training, education, and experience. In my experience, I have many classes that have prepared me to run a potential business. I have great communication skills and interpersonal skills learned from my CSB block class and also from working at the Rogue Valley Manor. By having both of these skills, my business will excel in customer service. Other skills that I have learned in my high school career are team work and leadership skills. As the boss of Sophisticated Scrubs, I plan on being an energetic and helpful team player.During the first years of running a business, it can be very hectic and stressful. One of the great things that I will provided for my business is that I will work well under stress. Stress is a great motivator for me because it pushes me to overcome my problems at hand and strive forward. This will be a great skill to use during the first years of my business. To be a business owner, you need to be able to take calculated risks. Risks can bring in more money and future customers. I believe that taking the necessary risks to provide more money or bring in future customers to my business will be worth it, and I will take them.By owning a business, there will be a lot of room for personal development. Some of the great things I can learn while I am running Sophisticated Scrubs are how to manage money, become a great boss and also develop my communication skills further. With dedication, effort, and the skills that I have and the skills that I will learn while running my business, I believe that my business will be successful.Section 2 - Analysis of the Business SituationTrade Area AnalysisGeographical AnalysisMy business Sophisticated Scrubs will be located in a great place. Not only does 1200 Biddle Rd, Medford, OR 97504 have a lot of potential customers that will pass by the shop because of its location, but it also has a great climate and great topography that will attract more customers to my business and will be easy to transport merchandise to.In Medford Oregon, there is a population of approximately 75,134 with a population change of 11% according to the website Sperling’s Best Places. My business also has the potential to attract other customers from the cities that surround Medford. The location has many hospitals that surround the area as well such as Providence Medford Medical Center and the Rogue Valley Medical Center. With the hospitals that are around the area my business should have more potential customers who have to wear medical scrubs required for their job. My business will also be located by other stores that are popular such as Barnes and Noble, Asian Grill, and Great Clips. There are also many tourist attractions near Medford. For example, Crater Lake and Mt. Ashland are two close attractions. The Rogue Valley International-Medford Airport and Interstate 5 are less than 10 miles away from the location Sophisticated scrubs will be which will help with bringing in product/merchandise.The climate in Medford, Oregon has a Mediterranean climate with dry hot summers and mild winters. The area within 25 miles?of this station is covered by?forests?(86%) and?croplands?(13%), according to the website Weather Spark. The?warm season?lasts from?June 21?to?September 17?with an average daily high temperature above 83°F. The hottest day of the year is?July 30, with an average high of?92°F?and low of?59°F.The?cold season?lasts from?November 11?to?February 17?with an average daily high temperature below54°F. The coldest day of the year is?December 25, with an average low of?31°F?and high of?44°F () The average rainfall in Medford, Oregon is 16 inches with an average 6.9 inches of snow during the year. By having a Mediterranean climate, it will be beneficial for my business. It will be beneficial for my business because with the average temperatures during the year, it will not affect customers or employees reaching my business. The average temperature will also help with the transportation of merchandise without problems.The Cascade mountain range is located in Oregon with the highest elevation being Mt. Hood at 11,239 ft. and the lowest elevation being the Pacific Ocean at sea level. Southern Oregon also has many rivers including the Rogue River and the Klamath River. “Southern Oregon is strategically located midway between Portland and San Francisco on Interstate 5, with convenient connections to the Oregon coast via Highway 199 and to eastern Oregon via Highways 62 and 140. The region is a major commercial motor freight transportation hub, with more than 30 interstate, intrastate, and less-than-truckload (LTL) carriers based locally, along with numerous truck brokers. Rail freight service is available through Central Oregon and Pacific Railroad, connecting the region north to Eugene and south to California. Air freight services are provided by Areo Flight, Ameriflight, Empire Air, Fed-Ex, Sauder Mail Courier, Secured Courier, Swift Couriers, and UPS”(Soredi). With Sophisticated Scrubs being located in Medford, there will be many different options for shipping merchandise to my store. Whether it’s by air or by road, my company will have the merchandise it needs to create a profit.With the Mediterranean climate, great topography and location, there will be no difficulties of transporting merchandise to my business. Medford, Oregon will be the perfect place to open my petitive Data Analysis Scrub HubProductsMedical uniforms including shirts, pants, and shoes. Brands including BARCO, Cherokee, Koi, and Orange Standard.PriceModerate price according to (starting at $25.00-$30.00)Location115 W Main St, Medford, OR , group price discounts, in house embroidery Uniform Emporium: Scrubs; Etc.ProductsMedical uniforms including shirts, pants, and shoes. Brands include: Barco UniformsCarharttCherokee UniformsDickies Medical UniformsHealing HandsKOILandau UniformsOrange StandardPrestige MedicalWhite Swan MetaKlogsSanita ClogsPeaches UniformsWonder WinkPriceModerate price (starting at $18.00)Location401 SE 6th St, Grants Pass, OR 97526Promotion AnalysisHelpfulHarmfulInternal StrengthsWeaknesses Specific marketGreat customer serviceLocated in a well-known placeNot as knowledgeableNew storeNo guaranteed customersExternalOpportunitiesThreatsDiscounts to people that work at the hospitalsNursing population is increasingNew potential customersScrub Hub/ other stores that sell my merchandiseBad customer reviewsFinancesMarket Segment AnalysisA business needs its customers to thrive and create a profit. By concentrating on the specific target market a company has, it can make an estimate on what trends or products that the customer wants. By focusing on my businesses target market, I will be able to make better judgments on what my business will need to make a larger profit while also thinking of the 4 p’s of marketing (product, price, place, and promotion).Demographics are the statistical data relating to the population and particular groups within it. My business Sophisticated Scrubs will have a target market of 30-60 year old, white women in the nursing career. I will be focusing on this target market, because this target market is the most common demographic of an RN. RN’s need medical scrubs and I want my business to be the one to provide them with them.Sophisticated ScrubsDemographicsAge: 30-60I chose the age thirty for this demographic because thirty is the most common age of a new graduate in the Nursing career. I chose the age sixty for this demographic because sixty is the most common age of retirement for a Registered Nurse. Sex: FemaleI chose female for this demographic because the most common sex of a registered nurse is female.Race: WhiteI chose white for this demographic because the most common race for a registered nurse is white.Income Levels: $67,930I chose the income level $67,930 because this is the most common income for a registered nurse.Education: Bachelors of Science in NursingI chose the education level bachelors of science in nursing because this is the most common education earned for a registered nurse.Psychographics is the study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research. The Psychographics of Sophisticated Scrubs according to the website VALS are thinkers. “Thinkers are motivated by ideals. They are mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility. They tend to be well educated and actively seek out information in the decision-making process. They are well-informed about world and national events and are alert to opportunities to broaden their knowledge. Thinkers have a moderate respect for institutions of authority and social decorum but are open to consider new ideas. Although their incomes allow them many choices, Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products that they buy (VALS).” According to the health careers network, the top ten characteristics for a nurse to have are empathy, detail oriented, communication, intuition, physical endurance, emotional stability, critical thinking, coordinator of service, patience, and dedication.Sophisticated ScrubsPsychographicsThe reason I chose Thinkers for the psychographic for my target market, is because I believe that most registered nurses are educated and have the most common characteristics that Thinkers have.Thinkers are motivated by ideals. They are mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility. They tend to be well educated and actively seek out information in the decision-making process. They are well-informed about world and national events and are alert to opportunities to broaden their knowledge. Thinkers have a moderate respect for institutions of authority and social decorum but are open to consider new ideas. Although their incomes allow them many choices, Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products that they buy. Favorite Things: An informed discussion or debate, Finances management, Being a smart shopper, Proven products For Sophisticated Scrubs to become successful it needs a target market. By Sophisticated Scrubs having the target market of a 30-60 year old, white woman with the psychographic of a thinker, I will be able to make better judgments on the products my business will need.Analysis of LocationLocationAddress: 1200 Biddle Rd, Medford, OR 97504. By E McAndrew’s and Polar Dr. Medford and the Rogue valley international Internet. North Medford. Has hospitals and restaurants near it. In the Bear Creek PlazaCompetition: North Medford. 1.5 miles away 5 minutesTraffic: Has a lot of foot and car traffic. People are going to Applebee's, Tinsletown, Toys R us, Sleep Country, and even the hospital.Map:Floor PlanSection 3 - Proposed Operation of proposed BusinessProposed OrganizationType of Ownership As the owner of Sophisticated Scrubs, I believe that the best option for the type of owner ship would be a sole proprietorship. More than 75 percent of companies use this method of ownership because it is simple for small businesses. A sole Proprietorship will allow me to make all of the decisions of my business and not have to worry about going through another person to make a decision.Management126365395605Sophisticated Scrubs ManagementThe type of management that I will run my business is with the teamwork style. This will be the way I run my business because I believe that the goals I set are accomplished better and faster with team work. It is important for a business to have a strong leadership and teamwork ability in management. By having a great style in management, the business can excel in profits and meet set goals.Sophisticated Scrubs will work as a team. With teamwork everybody can pitch ideas, and also solve problems with ease. Teamwork management requires hard work and dedication, along with good communication skills between all staff members. Everybody must pitch in and be clear and concise. As the owner, I will be responsible for directing when needed and evaluating the employees.As the owner, I will be responsible for overseeing, and directing things in my business. I will make sure employees are meeting set goals and being responsible for their job duties and requirements. Their job requirements include selling products, customer service, maintaining the floor, and creating a welcome and inviting environment for the customers.Retail employees will be paid $10.00 an hour with possible promotions for doing well, and the other manager will be paid $17.00 an hour. As the business owner and senior manager, I will be paid $28.00 an hour. In total for the year the amount of labor that I will pay for everybody is $158,079 dollars.Sophisticated Scrubs Yearly Labor Schedule Pay Per HourHours Per WeekYearly PayOwner/ Sr. Manager$28.0040$57,277Manager$17.0040$36,251Employee One$10.0040$21,517Employee Two$10.0040$21,517Employee Three$10.0040$21,517Total$75.0040$158,079Proposed Product or ServiceProposed Product or Service MixSophisticated scrubs will sell well needed medical scrubs to the people of the Rogue Valley. There are only a few businesses that sell scrubs around the Rogue Valley, and I believe that my business will be unique to its consumers while still having healthy competition. My business will carry brands such as Cherokee, Grey's Anatomy by BARCO, BARCO, Koi and others including Orange standard and Disney Uniforms. My business will have medical scrubs including long sleeved, short sleeved, and v-neck shirts, in sizes XS, S, M, L, and XL. My business will also carry medical scrub pants in sizes XS, S, M, L, and XL. All products will have a variety of colors and styles. My business will also carry different styles of non-slip shoes required in the medical field.Sophisticated scrubs will be a great business in the Rogue Valley and will have the affordable yet durable products that the consumers will need.SuppliersSophisticated Scrubs Suppliers ListCompanyAddressPhone NumberWeb AddressProductsRatingBARCO Uniforms350 West Rosecrans AvenueGardena, CA 90248310.323.7315 medical scrub uniforms including scrub shirts and pants.4The Koi Warehouse 725D Airport Fwy.Hurst, TX. 760531-866-6-SCRUBS (1-866-672-7827)Koi medical scrub uniforms including scrub shirts and pants4Medical Scrubs MallMedical Scrubs Mall150 South Pine Island Road, Suite 300Plantation, FL 33324888.556.1965Cherokee Medical Scrub uniforms including scrub shirts and pants.5Payless Shoe Source293 BARNETT RDMEDFORD, OR 97501-7936541-772-9246 non-slip shoes5EquipmentEquipmentQuantityPriceCash Register/POS1$632.75Retail Tables2$455.90Register Counter1$675.00Shoe slate rack20$322.00Shoe Storage Table2$119.98Mannequin 3$507.00Display Racks4$320.00Pricing Gun2$138.00Open Sign1$79.50Total$2,950.13Proposed Marketing StrategiesPricing PoliciesIt is very important for businesses to make the right decisions when pricing their product or service. When using the right pricing of products, a business can become successful. pricing a product too high can result in the loss of customers and eventually a loss in business. While on the other hand pricing low may sound like a great idea, it can backfire. If the price is too low, not enough profit is made, and customers may think that the product is not of high quality. Sophisticated Scrubs will be using the Cost plus pricing the Price lining technique and the Penetration Pricing.The Cost Plus Pricing that Sophisticated Scrubs will be using is great, because as the owner I can decide how much profit I will be receiving when using this pricing. By having the initial cost of the product and the labor added together with the percent of profit I want added to it, my business will be successful. Along with the Cost Plus pricing I will be using the Price lining technique. By using this technique together with the Cost plus pricing, certain things will be the same price based on how much of a profit I would like to bring in to the business. For all new products, Sophisticated Scrubs will use Penetration Pricing. Penetration pricing will be effective because it should sell products faster. By having great deals on new products, Sophisticated Scrubs should also be able to bring in more customers.All three of these strategies will be beneficial for Sophisticated Scrubs. Sophisticated Scrubs will generate a profit and also customers using these three strategies.Promotional StrategiesIn the business world, it is important to have promotional strategies to promote a business’s product or service. People need to know what your product is or it will not sell. Promotion is a key to success. I have learned many ways to promote a business. Sophisticated Scrubs will plan on using social media, sales promotions, and advertising. Social media is a great way to promote a business because it is free. Sophisticated Scrubs will have an Instagram page, Twitter page, and also a Facebook page for consumers to share and like. By using social media, my business will be promoted without any extra costs.Sophisticated Scrubs will also use Sales Promotions such as displays and coupons. Customers will have the opportunity to buy products in bulk orders that will include a 10% discount. Other customers will have the opportunity to sign up with their email to receive monthly coupons.Examples of advertising Sophisticated Scrubs will include using magazine ads and also radio broadcasting. My business will also donate to local charities. The employees of Sophisticated Scrubs will also be required to participate in community service, so that my business can give back to the community.With the simple yet effective promotional strategies that my business will use, customers will know about the products and my business will be successful.Section 4 - FinancingProjected Income and ExpensesSales ForecastCompany% of Market Share% of Target Market10%Estimated SalesEstimated EarningsWalmart 10 4,779.125477.9125Scrub Hub2612,425.7251242.5725Uniform Emporium157,168.6875716.86875Jc Penny's104,779.125477.9125Kohl's157,168.6875716.86875Sophisticated Scrubs2411,469.91146.99$688,194$344,097Estimated Customer spending in a month$60.00Total Target Population47,791.25By using the Target Market Demographics, I was able to find out who my target market was. Once I found this number, I calculated a percent of what my business would draw in along with its competitors. I then found out what 10% of my target market was , because normally 10% of my customers will purchase 90% of my product. After I found out how many customers I would have, I estimated a customer's spending per month in my shop and multiplied this by the number of customers my business would draw in to find the estimated sales. After finding the estimated sales, I divided by 2 because a new store on average during its first year will only earn 50% of its estimated sales.Building Cost Square Footage: 1680 sq ft.33.6 x50 Square FeetBuilding Costs: $1.80?/SF/MonthTotal Cost Per Month : $3,024 per month Total Cost Per Year: $36,288 per yearPct. Procurement Fee: 2.50% Proposed Plan to Meet Capital NeedsFinancingStart Up CostsExpense CategoriesRetail in $Deposits3,900Equipment14,000Transportation Equipment4,000Building Improvements 9,000Professional fees1,500Advertising9,000Working Capital191,035Inventory50,000Miscellaneous8,000Total$290,435Working CapitalEquipmentTotal Cash Needed$290,435$14,00020% Down Payment$58,087$2,8003% Loan Fees$8,713.05$420Total Out of Pocket Cash Needed$66,800.05$3,220Loan Amount$357,235.05$17,220Prime Rate3.25%3.25%Additional Interest3.50%2.25%Total Interest Rate6.75%5.50%Length of Loan in Years3010Monthly Payment $992.31$143.50I will be taking out an SBA 7a Loan for 357,235.05$ with a monthly payment of $992.31 for 30 years. I will also be taking out another SBA 7a loan for $17,220 and a monthly payment of $143.50 for 10 years.Section 5 - ConclusionIn all, Sophisticated Scrubs will be an excellent business that sells quality Medical scrubs and shoes to the Rogue Valley. With the help of amazing investors, I believe that Sophisticated Scrubs will be possible. Section 6 - Bibliography"Geography- Southern Oregon." Oregon Geography. , 2013. Web. 17 Mar. 2015. < Rogue River Valley is a beautiful place. Has many mountain ranges and many things to do.Liraz, . "Managing a Busines." Liraz Business Guides. Web. 17 Mar. 2015. < many books and articles on how to create a successful business."National Treasure is the True Blue Forever." Travel Southern Oregon. , 2015. Web. 17 Mar. 2015. < videos and articles on many things that have happened, or events that have gone on in Southern Oregon.?"Southern Oregon Area Profile." soredi to help business prosper. , Web. 17 Mar. 2015. <;."Welcome to Southern Oregon." soredi to help business prosper. , Web. 17 Mar. 2015. <;."Best place to live in Medford, Oregon." Sperling's Best Places. Best Places to Live & Retire, Homes for Sale, 2014. Web. 11 May 2015."Map of the Plaza." Bear Creek Plaza Medford Oregon. , Web. 12 May 2015. <;."Average Weather For Medford, Oregon, USA." Weather . Cedar Lake Ventures, Inc, Web. 12 May 2015. <;."Climate in Medford, Oregon." Sperling's Best Places. Best Places to Live & Retire, Homes for Sale, 2014. Web. 12 May 2015. <;."Average Age of a New Nurse?."?All Nurses. INC, Web. 13 May 2015. <;.?"What is the Average Age of Retirement for Nurses in the United States."?Best Master of Science in Nursing degrees. Humphrey Theme on Genesis Framework · WordPress, 2015. Web. 13 May 2015. <;."Nursing Statistics."?Minority Nurse. MINORITY NURSE, 2015. Web. 14 May 2015. <;."Meet the Average Wal-Mart shopper."?Business Insider. Business Insider Inc., 2015. Web. 14 May 2015. <;."Average American."?Adage. Advertising Age, 6 Oct. 2003. Web. 14 May 2015. <;."Thinkers."?Vals. Strategic Business Insights, 2009-2015. Web. 14 May 2015. <;"Experiencers."?Vals. Strategic Business Insights, 2009-2015. Web. 14 May 2015. <;."Srub Hub."?Yelp. Yelp Inc, 2004-2015. Web. 18 May 2015. <;."Moderate price."?Yelp. Yelp Inc, 2004-2015. Web. 18 May 2015. <;."Uniform Emporium: Scrubs; Etc.."?Uniform Emporium: Scrubs; Etc.. The Uniform Solution, 2013. Web. 18 May 2015. <;."Uniform Emporium: Scrubs; Etc.."?Uniform Emporium: Scrubs; Etc.. The Uniform Solution, 2013. Web. 18 May 2015. <;."Salary Center."?Monster. Monster, 2012. Web. 27 May 2015. <;."Three Effective Management Styles."?all Business. AllBusiness., 1999-2015. Web. 28 May 2015.AppendixSelection LetterSophisticated ScrubsAlycea Jones1127 Coachman Dr.Central Point, OR, 97502(360)-485-3301April 18, 2015Mr. Frances HedgeSBA Loan OfficerBank of America?845 N. Highland StreetMedford, OR 97501Dear Mr. Hedge:I am starting a new business that can provide medical scrubs and accessories for the Rogue Valley. My business will provide shoes, uniforms, and jackets that are necessary for the medical field. My business will also supply things such as lanyards, and fitness supplies that are a luxury to have while working in the medical field.My business is practical because there are many hospitals and businesses in the medical field that are located in Medford, Oregon. Many of these employers require medical uniforms for their employees in the Rogue Valley, and my business will supply to their wants and needs. My business will be better and competitive, because it will be in a great location, have friendly employees, and have a large selection for the consumers’ needs. I believe that Sophisticated Scrubs will be highly successful in the Rogue Valley. I look forward to discuss my ideas further with you, and would like to schedule a time to meet with you. You can contact me at (360)-485-3301 or Jones606546@.Sincerely,Alycea JonesPrint AdBusiness CardLogo ................
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